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Social Science Clinic => Business => Topic started by: shivanipalawai@gmail.com on May 9, 2022

Title: Which of the following is a major advantage of equity financing through the sale of shares of ownership?
Post by: shivanipalawai@gmail.com on May 9, 2022

Question 1

Which of the following is a component of a firm's working capital account?
◦ Long-term loans
◦ Debentures
◦ Inventory
◦ Mortgage bonds
◦ Convertible bonds

Question 2

Which of the following is a major advantage of equity financing through the sale of shares of ownership?
◦ Selling shares of ownership makes the company's operations less complicated.
◦ Selling shares of ownership does not change the way a company is managed.
◦ Selling shares of ownership consumes less time than other forms of financing.
◦ Selling shares of ownership has tremendous potential to fuel organizational growth.
◦ Owners do not risk their position in the firm when selling shares.

Title: Which of the following is a major advantage of equity financing through the sale of shares of ownership?
Post by: xinyiff on May 9, 2022

Answer 1

Inventory

The working capital accounts represent a firm's cash on hand as well as economic value that can be converted to cash (inventory) or is expected from customers (accounts receivable), minus what it is scheduled to pay out (accounts payable).

Answer 2

Selling shares of ownership has tremendous potential to fuel organizational growth.

Equity financing, selling shares of ownership, has tremendous upside potential for the company as a whole and for any individual or organization that owns shares. Equity financing has fueled the growth of most of the major corporations in the world, and it has contributed to the financial security of millions of employees.

Title: Re: Which of the following is a major advantage of equity financing through the sale of shares of ow
Post by: Ismael Cano on Dec 1, 2022

Thank You